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First Substitute H.B. 150

Representative David L. Hogue proposes to substitute the following bill:


             1     
ATTORNEY LIEN LAW

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: David L. Hogue

             5      AN ACT RELATING TO THE JUDICIAL CODE; PROVIDING FOR AN ATTORNEY'S LIEN
             6      FOR WORK PERFORMED; AND CLARIFYING WHEN A LIEN MAY BE FILED AND
             7      ENFORCED.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      REPEALS AND REENACTS:
             10          78-51-41, as last amended by Chapter 100, Laws of Utah 1989
             11      Be it enacted by the Legislature of the state of Utah:
             12          Section 1. Section 78-51-41 is repealed and reenacted to read:
             13          78-51-41. Compensation -- Attorney's Lien.
             14          (1) The compensation of an attorney is governed by agreement between the attorney and
             15      a client, express or implied, which is not restrained by law.
             16          (2) An attorney shall have a lien for the balance of compensation due from a client on any
             17      moneys or property that is the subject of or connected with work performed for the client,
             18      including, but not limited to:
             19          (a) any real or personal property that is the subject of or connected with the work
             20      performed for the client;
             21          (b) any funds held by the attorney for the client, including any amounts paid as a retainer
             22      to the attorney by the client; and
             23          (c) any settlement, verdict, report, decision, or judgment in the client's favor in any matter
             24      or action in which the attorney assisted, including any proceeds derived from the matter or action,
             25      whether or not the attorney is employed by the client at the time the settlement, verdict report,

             26      decision, or judgment is obtained.
             27          (3) An attorney's lien commences at the time of employment of the attorney by the client.
             28          (4) An attorney may enforce a lien under this section by moving to intervene in a pending
             29      legal action in which the attorney has assisted or performed work, or by filing a separate legal
             30      action. An attorney may not move to intervene in an action or file a separate legal action to
             31      enforce a lien before 30 days has expired after a demand for payment has been made and not been
             32      complied with.
             33          (5) An attorney may not be required to file a notice of lien as a prerequisite to enforcing
             34      a lien as provided by Subsection (4). However, an attorney may file a notice of lien in a pending
             35      legal action in which the attorney has assisted or performed work for which the attorney has a lien
             36      under this section. In addition, an attorney may file a notice of lien with the county recorder of the
             37      county in which real property that is subject to a lien under this section is located.
             38          (6) Any person who takes an interest in any property that is subject to an attorney's lien
             39      with actual or constructive knowledge of the attorney's lien, takes their interest subject to the
             40      attorney's lien. Priority between competing attorney's liens shall be determined by the date the
             41      work is performed by the attorney for the client, with the earlier work receiving the higher priority.
             42          (7) This section does not alter or diminish in any way an attorney's common law retaining
             43      lien rights.

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